The UK Financial Services Authority is looking at tightening regulations around their financial product sales in regards to the general public and considering making the task the responsibility of two different regulators.
The ideas is that with closer supervision over financial products then there will be less risks and each product can be more accurately assessed to determine how a customer may be influenced if they use the product. The UK government is also considering if additional measures are needed to make sure that certain products are not sold improperly according to a FSA report posted on their website.
Jones Day London financial regulation lawyer Harriet Territt stated that the FSA proposals from somewhere in the middle of regulating where items are sold and mandating that all products receive approval before sale with the focus still on banks mostly to create their own procedures when it comes to governing products.
The FSA has been forcing banks publicly to conduct more transparent placing fines on Barclays Plc this month for not fully disclosing the risks attached to two funds that it sold off to thousands of retirees across the country.
Earlier during January the FSA also fined the National Westminster Bank and its owner Royal Bank of Scotland Group Plc a substantial 2.8 million pounds for not properly handling complaints.
After the financial regulator is removed in 2012 the responsibility of protecting consumers and enforcing laws against market abuse on both criminal and civil elves will be the responsibility of the Consumer Protection and Markets Authority.